The maximum conforming loan limits for single-family one unit properties that carry Fannie Mae and Freddie Mac mortgages will increase in 2017, according to a new report from the Federal Housing Finance Agency (FHFA). The “baseline” maximum loan limit will go up from $417,000 to $424,100, which represents an increase of $7,100.
With foreclosures on the decline and home values rising across the country over the last 10 years, this is great news for homebuyers and homeowners.
FHFA uses its Housing Price Index (HPI) to track the national average of home prices across the nation. From 2006 to the end of 2016, they calculated a 1.7% increase in average home values, and saw the need to raise loan limits in all but 87 counties (or county equivalents) in the country.
In high-cost areas, the maximum area loan limit ceiling is much higher at $636,150. Limits may not exceed 150% of the baseline loan limit of $424,100. However, in states such as Alaska, Hawaii, Guam, and the U.S. Virgin Islands, the actual loan limit may exceed $636,150, but actual loan limits may be higher in some specific locations.
This is the first time since 2006, that the FHFA has raised the maximum conforming loan limits, and various legislative acts increased the loan limits in certain high-cost areas in the United States since 2008.
Here is an interactive map and PDF below showing the different loan limits across the nation.